Air Force Institute of Technology AFIT Scholar Theses and Dissertations Student Graduate Works 3-11-2011 A Comparative Study Between U.S. and Brazilian Acquisition Regulations and Practices Kesia G. Gomes Follow this and additional works at: https://scholar.afit.edu/etd Part of the Operations and Supply Chain Management Commons Recommended Citation Gomes, Kesia G., "A Comparative Study Between U.S. and Brazilian Acquisition Regulations and Practices" (2011). Theses and Dissertations. 1493. https://scholar.afit.edu/etd/1493 This Thesis is brought to you for free and open access by the Student Graduate Works at AFIT Scholar. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of AFIT Scholar. For more information, please contact [email protected]. A COMPARATIVE STUDY BETWEEN US AND BRAZILIAN ACQUISITION REGULATIONS AND PRACTICES THESIS Kesia G Arraes Gomes, Captain, Brazilian Air Force AFIT/LSCM/ENS/11-04 DEPARTMENT OF THE AIR FORCE AIR UNIVERSITY AIR FORCE INSTITUTE OF TECHNOLOGY Wright-Patterson Air Force Base, Ohio APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED. The views expressed in this thesis are those of the author and do not reflect the official policy or position of the United States Air Force, Department of Defense, or the United States Government. AFIT/LSCM/ENS/11-04 A COMPARATIVE STUDY BETWEEN US AND BRAZILIAN ACQUISITION REGULATIONS AND PRACTICES THESIS Presented to the Faculty Department of Operational Sciences Graduate School of Engineering and Management Air Force Institute of Technology Air University Air Education and Training Command In Partial Fulfillment of the Requirements for the Degree of Master of Science in Logistics Management Kesia Guedes Arraes Gomes Captain, Brazilian Air Force March 2011 APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED. AFIT/LSCM/ENS/11-04 A COMPARATIVE STUDY BETWEEN US AND BRAZILIAN ACQUISITION REGULATIONS AND PRACTICES Kesia Guedes Arraes Gomes Captain, Brazilian Air Force Approved: //signed// March 15th, 2011 Dr. Jeffrey Ogden (Chairman) date //signed// March 15th, 2011 Dr. William A. Cunningham (Member) date AFIT/LSCM/ENS/11-04 Abstract It has been widely recognized that effective purchasing and supply management can significantly contribute to organizational success not only in the private but also in the public sector. In this view, the researcher undergoes a tripartite comparative analysis approach using: (1) Brazilian Acquisition Law, (2) US Federal Acquisition Regulation and (3) Selected Articles from the European Journal of Purchasing and Supply Management (1996-2010). Specifically, the primary research question is: How does the Brazilian Law 8666/93 compare to the American Federal Acquisition Regulation (FAR/84)? Therefore, an in-depth assessment and analysis of the procurement systems of the United States and Brazil is executed in order to determine the different perspectives and policies adopted by these countries; and how differently each Government perceive the purchase function. An extensive literature review using selected articles from the European Journal of Purchasing and Supply Management (1996-2010) enabled the generation of 22 potential topics for comparative purposes. This research is qualitative in nature and two methods were utilized: Coding techniques and CRA (Center Resonance Analysis). A complete coding structure was developed using the Brazilian Acquisition Law as the primary basis, and two main coding structure parts were selected in an endeavor to answer the research questions. The set of analyses were facilitated through the use of the Crawdad Software, which applies text analysis techniques by representing the text as a network of essential linked concepts. Several lessons learned were collected that can be ultimately incorporated on the purchasing practices of the Brazilian acquisition system. iv AFIT/LSCM/ENS/11-04 DEDICATION To my husband and son: For trusting and supporting me throughout this work. v Acknowledgments I would like to express my sincere appreciation to my faculty advisor, Dr. Jeffrey Ogden, for his guidance and support throughout the course of this thesis effort. His time and insights were indispensable in bringing this work to culmination. I would, also, like to thank Dr. Cunningham for accepting to be my reader and for being such an outstanding professor. I am forever indebted to my friends Nicky Illiopolis, Lt Col Mike Ingersoll and Capt Matthew Pope for editing my work. Their observations and experience were most certainly appreciated. Kesia Guedes Arraes Gomes vi Table of Contents Page Abstract .................................................................................................................. iv Dedication ....................................................................................................................v Acknowledgments........................................................................................................... vi List of Figures ...................................................................................................................x List of Tables .................................................................................................................. xi I. Introduction .............................................................................................................1 Purpose .....................................................................................................................1 Background ..............................................................................................................1 Research Focus ........................................................................................................2 Research Questions ..................................................................................................3 Scope and Limitations..............................................................................................4 Methodology ............................................................................................................4 Benefits of the study ................................................................................................5 Organization .............................................................................................................6 II. Literature Review.....................................................................................................7 Strategic procurement, partnership sourcing and supply network strategies .........10 Supplier development, ethical challenges and strategic purchasing ......................16 Total Quality Management (TQM) ........................................................................19 Strategic Management ...........................................................................................22 Supply Chain Management - outsourcing..............................................................24 Environmental purchasing and a comparison between private and government acquisition goals.....................................................................................................26 Logistics service, outsourcing and target costing process .....................................27 Risk in supply networks; transaction costs, relational contracting and public private partnerships ............................................................................................................35 Public versus private sector purchasing of health services ....................................39 Innovative practices in public procurement partnerships ......................................41 Contractor bidding decision-making......................................................................42 E-procurement in the public sector ........................................................................43 Contractual and relational governance, construction contracts and critical success factors for managing purchasing groups ................................................................45 Conclusion .............................................................................................................47 Page vii III. Research Methodology ..........................................................................................50 Research project and qualitative versus quantitative data .....................................51 Research questions .................................................................................................52 Research Design.....................................................................................................53 Design of data collection .......................................................................................53 Method for analyzing and collecting data ..............................................................55 What is a code? ......................................................................................................56 Coding process…………………………………………………………………... 56 Step 1: Coding the data…………………………………………………………...57 Step 2: Developing themes from the data………………………………………...58 Step 3: Develop a conceptual schema (coding structure) from the data………….58 Step 4: Writing up the analysis……… …………………………………………...57 Data analysis and Interpretation………………………………………….……….59 Centering Resonance Analysis……………………………………………………60 Reasons for choosing the Coding Method………………………………………..51 Theoretical background from the literature review……………………………….63 Conclusion …………………………………………………………………….….64 IV.